Hi Team, If an employee got retirement age and still that employee wants to continue with the system, what is the process for that?
From India, Bengaluru
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From India, Bengaluru
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Dear Dixit,
In my opinion, generally, any employee who has had a contented career and a planned life would always eagerly await the age of superannuation to turn a new leaf in his life. However, there can be exceptions. One might have started his career late and could not have still settled in life with unaccomplished commitments towards late-born children such as education, employment, or marriage, etc. Some others might be so obsessed with the routines of their own employment that they are ignorant of alternatives for life beyond work. Only such people will desire to stay with the organization even after their retirement on superannuation, and therefore it cannot simply be found fault with, as the adage goes, "Udhyogam Purusha Lakshanam."
Reemployment of an employee in the same organization after retirement on attaining the age of superannuation can be done in two ways - one is giving an extension of service at the discretion of the employer before actually allowing him to retire, and the other is engaging his services as a consultant on a contract basis after his actual retirement.
Extending the service of an employee of the workman cadre can set an example to incite other employees to make similar demands and can be a case of favoritism.
Engagement as a consultant on a contract basis can be adopted in the case of senior managerial cadre or professional and technical positions only. Such a step may indicate poor succession planning and may even lead to heartburn among immediate juniors aspiring for promotion, resulting in a higher attrition rate.
The ultimate decision in this regard rests with the wisdom of the top management depending on their compassion as well as the compulsion of their business needs.
From India, Salem
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6185In my opinion, generally, any employee who has had a contented career and a planned life would always eagerly await the age of superannuation to turn a new leaf in his life. However, there can be exceptions. One might have started his career late and could not have still settled in life with unaccomplished commitments towards late-born children such as education, employment, or marriage, etc. Some others might be so obsessed with the routines of their own employment that they are ignorant of alternatives for life beyond work. Only such people will desire to stay with the organization even after their retirement on superannuation, and therefore it cannot simply be found fault with, as the adage goes, "Udhyogam Purusha Lakshanam."
Reemployment of an employee in the same organization after retirement on attaining the age of superannuation can be done in two ways - one is giving an extension of service at the discretion of the employer before actually allowing him to retire, and the other is engaging his services as a consultant on a contract basis after his actual retirement.
Extending the service of an employee of the workman cadre can set an example to incite other employees to make similar demands and can be a case of favoritism.
Engagement as a consultant on a contract basis can be adopted in the case of senior managerial cadre or professional and technical positions only. Such a step may indicate poor succession planning and may even lead to heartburn among immediate juniors aspiring for promotion, resulting in a higher attrition rate.
The ultimate decision in this regard rests with the wisdom of the top management depending on their compassion as well as the compulsion of their business needs.
From India, Salem
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If mgt feel employees service are required then they can hire him on retainer-ship for some time ! Umakanthan. M Sir, rightly said It’s totally wisdom of the mgt .
From India, Gurgaon
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From India, Gurgaon
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(Fact Check Failed/Partial)-The process of continuing employment post-retirement is subject to company policies, laws, and agreements. Retainer-ship is an option, but legal implications must be considered.
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Dear member,
The engagement after the expiry of the original contract term of employment, retirement, or superannuation may be seen as an exception. Some organizations have an expressly written down policy to engage ex-employees as specialists or consultants under contractual arrangements. There is no prohibition under any law for such arrangements, and therefore, superannuated employees can be engaged by the organization under specific terms.
In the case of such ex-employees (superannuated) who were otherwise covered under EPF & ESI, they would not be required to be covered in the second innings. However, general insurance is advisable.
From India, Lucknow
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The engagement after the expiry of the original contract term of employment, retirement, or superannuation may be seen as an exception. Some organizations have an expressly written down policy to engage ex-employees as specialists or consultants under contractual arrangements. There is no prohibition under any law for such arrangements, and therefore, superannuated employees can be engaged by the organization under specific terms.
In the case of such ex-employees (superannuated) who were otherwise covered under EPF & ESI, they would not be required to be covered in the second innings. However, general insurance is advisable.
From India, Lucknow
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(Fact Checked)-The user's reply is mostly accurate. However, it's important to note that some countries may have specific regulations regarding rehiring retired employees. It's advisable to consult local labor laws for clarity. (1 Acknowledge point)
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Retired employees may be engaged or have their service period extended, but with the following measures:
1. As Mr. Umakanthan has been recommended, I am fully in agreement with him.
2. If his post-retirement remuneration is within the statutory limit of PF & ESI, that will continue, except for PF if the employee was a member of EPFO and settled his account (both PF & Pension) after retirement - the employee will be considered an excluded employee.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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1. As Mr. Umakanthan has been recommended, I am fully in agreement with him.
2. If his post-retirement remuneration is within the statutory limit of PF & ESI, that will continue, except for PF if the employee was a member of EPFO and settled his account (both PF & Pension) after retirement - the employee will be considered an excluded employee.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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(Fact Check Failed/Partial)-The information provided in the user's reply is incorrect. Post-retirement engagement has specific guidelines and statutory limits that need to be followed. Please refer to labor laws for accurate details.
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Dear Dixit-Mogalipuri,
There are two ways of handling this matter:
1. Staff need to be properly oriented well before the date of actual retirement, which can be done by giving them notice of retirement - before 1 year, 6 months, and 1 month. They need to be counseled on their period of retirement and financial management of the terminal benefits.
2. Such matters should be part of the "Policy on Employment of Staff Post-Retirement," which is very essential for all organizations. This policy alone shall prescribe for which positions such employment is permitted, what shall be remuneration on such agreement, and any other consideration in connection with such employment.
Kindly be guided accordingly.
From India, Chennai
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There are two ways of handling this matter:
1. Staff need to be properly oriented well before the date of actual retirement, which can be done by giving them notice of retirement - before 1 year, 6 months, and 1 month. They need to be counseled on their period of retirement and financial management of the terminal benefits.
2. Such matters should be part of the "Policy on Employment of Staff Post-Retirement," which is very essential for all organizations. This policy alone shall prescribe for which positions such employment is permitted, what shall be remuneration on such agreement, and any other consideration in connection with such employment.
Kindly be guided accordingly.
From India, Chennai
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(Fact Checked)-[The user's reply provides accurate information regarding handling an employee who wants to continue working past retirement age, emphasizing proper orientation, notice, and the need for a policy on post-retirement employment.] (1 Acknowledge point)
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In such a scenario, an employee can be hired as a consultant with a monthly fixed fee. In this case, the employee will raise a bill on a monthly basis for his services, and the same will be paid by the company.
From India, New Delhi
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From India, New Delhi
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(Fact Check Failed/Partial)-The user reply is incorrect. In most cases, retirement age means ending the employment relationship. Consult legal counsel for guidance.
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Extension of retirement age of teachers in Maharashtra 25.2.2011.pdf
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CiteHR.AI
(Fact Check Failed/Partial)-The user's reply contains some valid points regarding reemployment after retirement, but it lacks specific details on the legal aspects and procedures involved. To ensure compliance, it's essential to consider labor laws and company policies for post-retirement employment.